| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Irish Economy Last Updated: Oct 7, 2013 - 10:10 AM


Irish Economy 2013: Bord Gáis Energy Index dips 3% in September after 7% slide in Brent
By Finfacts Team
Oct 7, 2013 - 8:45 AM

Email this article
 Printer friendly page

Irish Economy 2013: The Bord Gáis Energy Index fell 3% in September despite rising wholesale gas, coal and electricity prices. The drop in the Index was driven by a 7% fall in Brent Crude Oil prices due to easing geopolitical tensions in Syria and Iran. The Index stood at 143 in September and recorded its first month-on-month drop since June 2013.

Bord Gáis Energy said there was no one dominant influencing factor on wholesale energy prices during September as the markets reacted to a variety of events. After August recorded the highest monthly average gas price for a summer month since the 1990s, natural gas wholesale prices increased by a further 4% in September. This was due to supply constraints from planned maintenance and a bout of cold weather which combined to push wholesale Day-ahead prices higher. Unusually, this resulted in wholesale Day-ahead gas prices trading at levels similar to those seen during the traditionally high winter demand months. Rising wholesale gas prices were a key reason for the 5% rise in Irish wholesale electricity prices month-on-month. In addition, European coal prices increased (+7%) as traders factored in rising freight costs and concerns rose about supply constraints in the months ahead amid rising seasonal demand.

John Heffernan, power trader at Bord Gáis Energy said: “The fall in Brent crude oil prices was the key factor driving the 3% drop in the Index month-on-month which superseded rising wholesale gas, coal and electricity prices. The ongoing rise in wholesale UK Day-ahead gas prices was of particular note. The prolonged gas demand in the winter of 12/13 influenced prices throughout the summer months as market participants replenished depleted stock levels amid heavy summer maintenance and reduced supplies. This resulted in record summer trading levels for wholesale gas which will influence prices in the months ahead.”

Oil (-7%): Month-on-month the front month Brent crude price fell 7% in euro terms as tensions in Syria and Iran eased following months of uncertainty. Actual oil supply disruptions equivalent to 2.7 million barrels a day were taken out of the world market in August and this resulted in the front month Brent crude oil price trading above US$116 a barrel. The restarting of Libya’s oil industry after strikes and protest was particularly relevant and supply constraints diminished over the month. This also contributed to the reduction in Brent crude oil prices.
Oil prices increased slightly due to the US Federal Reserve's unexpected decision to delay tapering its monthly bond purchases. However, this was counter-balanced at the end of the month by the prospect of a US government shutdown, a crisis for Italy's government and concerns about the US’s debt ceiling negotiations.

Natural Gas (+4%): Despite the average Day-ahead gas price for August being the strongest monthly average price for a summer month since the market was established in the late 1990s according to Platts, natural gas prices were 4% higher month-on-month for September. Unusually, over the summer months, wholesale gas prices were in line with levels seen last December and January which is due to unprecedented demand for gas storage injections following the complete depletion of stocks by the end of March 2013. The greater need for gas storage injections over the summer months coincided with very low Qatari LNG deliveries to the UK. This increased the UK's dependence on Norwegian and Russian gas supplies and in this regard, Norway’s biggest gas field has had its capacity reduced until next September.

Coal (+7%): In euro terms the ICE Rotterdam Monthly Coal Futures contract was 7% higher month-on-month. Throughout the month there was an upward momentum to prices despite a number of bearish factors such as: healthy stocks in Amsterdam-Rotterdam-Antwerp; the ending of a 53-day strike at a key Colombian coal mine and port operations; and the successful and unexpected aversion of another strike at the rail company that operates the line connecting Colombian thermal coal mines with export terminals. Higher prices were attributed to rising freight costs and heightened trader anxiety caused by the loss of 3.4 million m/t of coal due to the 53-day Colombian strike.

Electricity (+5%): In September the monthly average Irish wholesale electricity price rose 5% month-on-month with the combination of rising wholesale gas and carbon prices applying upward pressure. As the Irish wholesale electricity price is highly correlated to the Day-ahead price of wholesale gas in the UK, the 4% rise recorded in the September gas price applied upward pressure.

Check out our subscription service, Finfacts Premium , at a low annual charge of €25.

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

Irish Economy
Latest Headlines
Finfacts launches new news site
Irish Farmers & Milk Prices: 'Shackles' off in April; Demanding safety-net in August
Irish pension managed funds returns at over 12% year-to-date in 2015
Irish chartered accountants' salary packages surge 13% in 12 months
Irish services PMI fastest rate since late 2006; Official data up only 2.4% in 12 months
Irish Economy: Tax €893m above target in year to July — €653m from corporation tax
Fact and Fiction: Time to review Ireland's economic statistics?
Irish M&A deals H1 2015: Dutch or UK firm acquires Irish firm for €32.6bn - they are both American
Irish manufacturing PMI strong in July
Irish Economy: Fall in GNP in Q1 2015; GDP rises
Irish Economy 2015: Central Bank lauds strong recovery; Time to start paying down debt
Irish Budget 2016: Ibec demands 20 tax cuts, spending and investment rises
Low pay in Ireland; Lowest social security & corporate taxes in Europe
Ireland vs Greece: Enda Kenny's false claims on growth, taxes and debt
Irish standard of living in 2014 below Euro Area average, Italian level; Prices 5th highest in EU28
Irish goods exports rose a record 30% in April - due to fake tax-related transactions
Mexican tall ship to sail into Dublin on June 17th
Irish industrial production up 20% in first four months of 2015; Construction down 2.6% in first quarter
Irish Economy 2015: ESRI slams return to boom-time pro-cyclical fiscal policy
Irish pension fund returns in average range 1.6% - 1.8% in May 2015
Irish service sector PMI remains strong; Tax avoidance clouds data
Ireland: Official unemployment rate at 9.8% in May; Broad rate at 19% — 440,000 people
Ireland: Fiscal Council warns of dodgy forecasts, no plan; OECD warns of new property bubble
Irish Public Finances: Tax revenue in first five months of 2015 €734m ahead of target
No simple measure of economic progress in Ireland: GDP & GNP defective
Irish manufacturing PMI rises in May; Production up unbelievable 45% in year to March!
ESRI says data volatility hinders Irish economic forecasting; Tax avoidance taboo cause
Ireland at 16 in international competitiveness ranking; US, Singapore and Hong Kong on top
Irish Economy 2015: Sectors to add 200,000 jobs?; Broad jobless rate at 19%
Irish Export Performance: Myths and reality - Ireland is a poor exporter
Irish Economy: 41,300 jobs added in 12 months to Q1 2015 - Construction up 19,600
China-Ireland: Economic relationship on a slow burn
Estonia, Austria, France, Ireland head global alcohol rankings
Irish Exchequer Returns: Tax receipts under target in April but ahead in year
Irish service sector PMI rose in April
Irish manufacturing PMI remained strong in April- includes overseas manufacturing
Irish Live Register + 90,000 activation scheme numbers at 439,000 in April
Ireland: Coalition drops 2018 full-employment target
Ireland Spring Statement: Noonan promises 200,000 net new jobs by 2018
Irish Economy 2015: Retail sales volume up 1.4% in month of March